ITC Ltd: India's Diversified Giant Ousts BAT as Global Tobacco Leader

BAT by 2FIRSTS.ai
Dec.08.2023
ITC Ltd: India's Diversified Giant Ousts BAT as Global Tobacco Leader
India's ITC Ltd has surpassed British American Tobacco (BAT) to become the world's third-largest tobacco company.

According to a report from The Telegraph, a daily newspaper in Kolkata, India, on December 7th, Indian conglomerate ITC Ltd has become the world's third-largest tobacco company, surpassing British American Tobacco (BAT), following a significant sell-off of BAT stocks that led to a sharp decline in their share prices.

 

ITC, a company that diversified its business from tobacco to fast-moving consumer goods, hotels, paper, and agricultural products, reached a market value of $68.6 billion by the end of the trading day on December 7th. On the other hand, British American Tobacco closed at a market value of £51.58 billion (approximately $64.9 billion).

 

The ITC company was established in 1910 as the India Tobacco Company Limited. As the company's ownership gradually became more Indian, the name was changed to I.T.C. in 1970, and later renamed ITC Limited in 1974.

 

British American Tobacco (BAT), established in 1902, is a joint venture between American Tobacco Company and Imperial Tobacco Company of Great Britain. It continues to hold significant stake in India's ITC Limited. Through three entities, British and American Tobacco Companies collectively own 29.04% of ITC, which is valued at a staggering $19.9 billion.

 

British American Tobacco's stake in ITC accounts for nearly one-third of the company's market value. However, the classification of British American Tobacco's stake in ITC as foreign direct investment is problematic because India prohibits foreign direct investment in tobacco companies, which restricts British American Tobacco's options in the country.

 

British American Tobacco, a multinational tobacco company, is publicly listed on the International Tobacco Company (ITC) and has two directors representing the company's shareholders.

 

The stock of ITC has been consistently on the rise, surpassing the broader market by a significant margin. In the past year alone, it has shown an impressive growth of 34.7%, and over the course of three years, it has risen by 125.5%. Investors continue to place their bets on the company's diversified strategy, the increasing profitability of its fast-moving consumer goods business, the growth in cigarette sales, and the recovery of its hotel industry.

 

In the six months ending on September 30, 2023, the tobacco business accounted for only 37% of ITC Company's total revenue. However, it accounted for 78% of the company's pre-tax profit.

 

In contrast, the stocks of British American Tobacco hit multi-year lows on Wednesday as the company wrote off $31.5 billion of value from some of its American cigarette brands. British American Tobacco saw a decline of as much as 10% on the London Stock Exchange, reaching its lowest level since September 2010.

 

It is worth mentioning that British American Tobacco has set a target for half of its revenue to come from non-combustible products by 2035.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

State Tobacco Monopoly Administration Meets with Representatives from British American Tobacco
State Tobacco Monopoly Administration Meets with Representatives from British American Tobacco
On May 26, Wang Gongcheng, Member of the Party Leadership Group and Deputy Director of the State Tobacco Monopoly Administration, met in Beijing with BAT Management Board Member and Regional Director for Asia-Pacific, Middle East & Africa, Zhanoski. The two sides held friendly talks.
May.27 by 2FIRSTS.ai
Interview: AIRSCREAM on Balancing Compliance and Market Demand Amid the Disposable Vape Crackdown
Interview: AIRSCREAM on Balancing Compliance and Market Demand Amid the Disposable Vape Crackdown
During the Dubai World Vape Show, AIRSCREAM executive Andrew spoke with 2Firsts about the brand’s strategies on compliance, large-capacity products, and nicotine alternatives. He underscored the company’s stance against disposable vapes and its commitment to long-termism and youth protection.
Jul.04
2Firsts Interview | Adding Evidence: How Two Recent Blu Studies Strengthen the Case for NGPs As THR Tools
2Firsts Interview | Adding Evidence: How Two Recent Blu Studies Strengthen the Case for NGPs As THR Tools
2Firsts interviewed Elizabeth Clarke, scientific lead at Imperial Brands, on the latest blu behavioral studies. Results showed that smokers with no intention to quit reduced cigarette use by nearly 29% in one week, and about one-third to 40% had significantly reduced or quit at six months. Clarke highlighted the role of flavor diversity and behavioral science, urging science-based harm reduction policies to demonstrate blu’s public health potential.
Jul.17
Nepal High Court Rules to Lift Ban on E-cigarette Import and Sales
Nepal High Court Rules to Lift Ban on E-cigarette Import and Sales
Nepal’s Patan High Court ruled to lift the ban on e-cigarette imports and sales, stating the Health Ministry’s directive lacked legal basis. In 2023–2024, e-cigarette imports generated over NPR 230 million (about $1.73 million) in customs revenue.
Jul.03 by 2FIRSTS.ai
Chinese Taiwan Cracks Down on New Tobacco Products with 710,000 Inspections
Chinese Taiwan Cracks Down on New Tobacco Products with 710,000 Inspections
Since revising its laws, Chinese Taiwan has conducted over 710,000 inspections and issued nearly NT$500 million in fines, yet gaps remain in regulating online marketing.
May.27 by 2FIRSTS.ai
Malaysia’s Kedah State to Ban All Vape Sales, Retailers Ordered to Shut Down by Year-End
Malaysia’s Kedah State to Ban All Vape Sales, Retailers Ordered to Shut Down by Year-End
Malaysian state of Kedah orders e-cigarette businesses to cease operations by December, citing public health and drug threats.
May.23 by 2FIRSTS.ai